Seven says Ten’s claim to programmer is void

Channel Seven said that John Stephens was under medication for surgery while agreeing to join Channel Ten, which makes his contract with the rival network void.
Photo: Bloomberg

by
Jake Mitchell

A letter from lawyers representing the
Seven Network
suggested veteran programmer
John Stephens
was under the influence of medication following surgery when he entered into an agreement to join
Ten Network Holdings
.

The career move for Mr Stephens had come at the time of a major hip operation and a legal document sent to Ten’s lawyers obtained by The Australian Financial Review suggests he may have been under the influence of medication when he entered into an agreement with Ten.

“We are also instructed that various officers of Ten held discussions with Mr Stephens regarding its offer of employment to him during his hospitalisation for hip-replacement surgery and while he was under the effects of serious medication," said the letter from the Johnson Winter & Slattery law firm representing the Seven Network.

“We also understand that Mr Stephens was under such medication when he agreed to the proposed future employment with Ten and as such did not have capacity to enter into any binding agreement with Ten.

“Therefore, any alleged contract with Ten is likely to be void so any action for inducement of the contract must fail."

It is unclear whether Seven will seek to use the argument concerning Mr Stephens’s medication in court.

The full case between the television broadcasters has been given an expedited timetable and hearings are expected to last five weeks.

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Ten obtained an interim injunction to attempt to stop Mr Stephens from walking away from his contract but it was thrown out by the New South Wales Supreme Court on Monday. Ten was ordered to pay Seven and Mr Stephens’s legal costs.

A statement from Ten on Tuesday said Mr Stephens would begin work on June 9. “Mr John Stephens remains under a contract with Network Ten, which is continuing and has not been terminated," it said.

It is understood Justice Paul Brereton said on Monday that Ten’s case for injunctive relief on a final basis was “weak". In 2011, after Ten poached Seven executive
James Warburton
as chief, Seven took Ten and Warburton to court. Seven dropped its action against Ten but pursued Mr Warburton to the NSW Supreme Court where a judge delayed his start date to January 2012, which was 10 months less than Seven had hoped for but a “substantial partial success" for Seven, according to the judgement.